SIC Brokerage Market Recap WE 15-05-20

18th May 2020 | Source: sicbrokerage.com

Stock Market Highlights

•This week, the benchmark index dropped to a new year low, then rose marginally to 1,983.83 with a -12.11% year-to-date return. This week’s performance was due to losses in six counters in the banking, insurance, telecom and beverages sector. Market capitalization followed the market’s trend, down 1.11% to settle at GH¢53.99 billion.

•CAL Bank (-1.28%), Enterprise Group (-1.82%), Standard Chartered Bank (-2.78%) and Ecobank Ghana (-6.04%) dragged the GSE-FI down by 1.76% to close at 1,841.15 with a -8.84% year-to-date return.

Trading Activity Dropped

•A total of 11,749,650 shares valued at GH¢8,159,296 changed hands this week compared to 24,261,385 shares valued at GH¢15,315,136 last week.

•MTN Ghana dominated trades, accounting for 81.33% of total value traded.

Outlook

•We expect a slowdown in trading activity next week due to the coronavirus outbreak.

GCB Bank Limited (GCB)

Mr. Samuel Amankwah, an Executive Director of GCB is on compulsory retirement and has resigned from the Board of the Bank effective 4th May,2020.

Investors looking to purchase/sell stocks and treasury bills can do so through SIC Brokerage Ltd.

Fixed Income Market Highlights

•Primary Market

•At todays auction, government accepted 86.14% of its GH¢758 million target. The breakdown is GH¢531.39 million in 91 day bills, GH¢85.25 million in 182 day bills and GH¢36.30 million in 364 day bills, compared with last week’s auction of GH¢699.05 million in 91 day bills, GH¢116.64 million in 182 day bills and GH¢18.19 million in 364 day bills.

•The yield of the 91 day bill declined by 8 bps to 13.97% while the average yield of the 182 and 364 day bills declined to 14.00% and 16.70%, respectively.

•The target for the next auction is GH¢909 million in 91 and 182 day bills.

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•Secondary Market

Trading activity declined by 40.95% as 2,194 trades valued at GH¢1,057.89 million changed hands last week compared with 1,422 trades valued at GH¢1,791.39 million last week. Securities maturing in the medium term (2 – 10 years) dominated trading, accounting for 68% of trading activity while securities with short term maturities (less than 2 years) accounted for 25% of trades.